Lifeward (LFWD) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue of $25.7M in 2024, up 85% year-over-year, with Q4 revenue of $7.5M, the highest in company history.

• CEO announced retirement, highlighting 2024 achievements and setting the stage for profitability and growth in 2025.

• ReWalk Personal Exoskeleton sales rose 130% in 2024, driven by new Medicare coverage.

• Launched 2025 Sustainable Growth Plan, focusing on core product growth and cost reduction.

• Streamlined U.S. operations, closing two facilities and reducing headcount by 35% since the AlterG acquisition.

Financial highlights

• Q4 2024 revenue was $7.5M (up from $6.9M in Q4 2023); full-year revenue reached $25.7M, an 85% increase YoY.

• AlterG product line delivered $5.5M in Q4, its highest since acquisition; traditional products contributed $2.0M.

• GAAP gross margin in Q4 was 24.4% (down from 35.5% YoY); adjusted gross margin was 45.4%.

• GAAP operating expenses in Q4 were $17.1M (up from $8.6M YoY) due to a $9.8M non-cash impairment charge.

• Adjusted operating loss for Q4 was $3.3M, improved from $3.8M YoY; ended year with $6.7M cash and no debt, plus $5M raised post-quarter.

Outlook and guidance

• 2025 revenue expected at $28–$30M, with adjusted gross margin of 47–49%.

• Full-year non-GAAP operating expenses projected at $22–$23M, down from $27.5M in 2024.

• Anticipates full-year non-GAAP operating loss of $7–$9M, with Q4 2025 loss targeted at or below $1M.

• Sequential revenue growth expected each quarter in 2025, driven by ReWalk, AlterG, and MyoCycle.

• Q1 2025 revenue expected to be lowest of the year, with sequential growth in subsequent quarters.